Beijing claims self-governed Taiwan as part of its sovereign territory and has refused to rule out using military action to seize the island democracy.
The latest show of force follows a bumper round of arms sales to Taipei by the United States, Taiwan's main security backer.
From Monday, China will send army, navy, air force and rocket force troops to conduct "major military drills" code-named "Justice Mission 2025", said Senior Colonel Shi Yi, spokesman for the People's Liberation Army's Eastern Theater Command.
The activities will focus on "sea-air combat readiness patrol, joint seizure of comprehensive superiority, blockade on key ports and areas, as well as all-dimensional deterrence outside the island chain", Shi said.
A separate statement with a map showed five large zones surrounding the island where "live firing activities will be organised" from 8:00 am to 6:00 pm (0000 to 1000 GMT) on Tuesday.
"For the sake of safety, any irrelevant vessel or aircraft is advised not to enter the afore-mentioned waters and airspace," the statement said.
Taiwan condemned China's "disregard for international norms and the use of military intimidation to threaten neighbouring countries", Presidential Office spokeswoman Karen Kuo said.
Taiwan's military said it had established a response centre, deployed "appropriate forces" and "carried out a rapid response exercise".
The drills by China's ruling Communist Party "further confirm its nature as an aggressor, making it the greatest destroyer of peace", Taipei's defence ministry said.
- 'Joint assaults' -
The drills are "a stern warning against 'Taiwan Independence' separatist forces, and... a legitimate and necessary action to safeguard China's sovereignty and national unity", Shi said.
Plans involve vessels "approaching the Taiwan Island in close proximity from different directions", he said.
The "joint assaults" are intended to "test their joint operations capabilities", he added.
China's military last held large-scale drills involving live firing around Taiwan in April -- surprise manoeuvres condemned by Taipei.
The United States called them "intimidation tactics", and Britain warned they were "risking dangerous escalation".
China said this month it would take "resolute and forceful measures" to safeguard its territory after Taiwan said the United States had approved a major $11 billion arms sale.
Beijing announced fresh sanctions on 20 American defence companies last week, though they appeared to have little or no business in China.
Last month, Japan's Prime Minister Sanae Takaichi triggered a backlash from Beijing when she said the use of force against Taiwan could warrant a military response from Tokyo.
China demanded that she retract her statement, summoned Tokyo's ambassador, and warned its citizens against travelling to Japan.
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